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MTC’s shares shinning on NSX debut
MTC’s shares shinning on NSX debut

MTC’s shares shinning on NSX debut

Shares were available at N$8.50 a piece in its initial public offering (IPO).
Jo-Mare Duddy Booysen
PHILLEPUS UUSIKU – The share price of Mobile Telecommunications Ltd, which listed on the Namibian Stock Exchange (NSX) on Friday morning, rose by 3.1% on its first day of trading on the Local Index.

MTC’s shares were available at N$8.50 a piece in its initial public offering (IPO). The share closed at N$8.76 this afternoon.

That gave MTC a total market capitalisation of N$6.57 billion, making it the fourth biggest company on the Local Index. Namibia Breweries, with a total market capitalisation of N$10.326 billion, is the biggest, followed by FirstRand Namibia (N$7.894 billion) and Capricorn Group (6.827 billion).

A total of 10 000 MTC shares were traded on Friday. The highest price during intra-day trade was N$8.90 per share, and the lowest was N$8.50.

In total, shares worth N$87 450 were traded during MTC’s debut day.

MTC is the largest listing since the establishment of the Local Index.

A total of 367.5 million ordinary shares, which represents 49% of MTC’s shares, were made available to the general public offer and it was expected to raise about N$3 billion to N$3.5 billion.

A total of 5611 applications were received for a total of 299 045 261 shares, raising about N$2.5 billion.

UNLOCKING SHAREHOLDER VALUE

Speaking at the bell ringing ceremony, Leon Jooste, minister of public enterprises, said the aim of MTC’s listing was to develop Namibia’s financial sector as it critical for economic development. Currently a significant amount of savings leaves the country for investment outlets in other countries, he said.

Secondly, MTC’s listing will unlock maximum shareholder value and consequently liquidity for the fiscus, whereby both institutional and retail investors participation was encouraged through the creation of investment opportunities by the state in the Namibian economy.

The listing also demonstrates government’s commitment towards public enterprise reforms and is aimed at creating a new mind set as a listed company adhering to international best practices of corporate governance.

The last objective was to broaden economic participation through ownership by ordinary Namibians in a profitable public entity, Jooste pointed out.

“Therefore today, is a significant day in the history of our country. I feel privileged to have been part of the process to list the first Namibian public enterprise and I want to honour my president and fellow cabinet colleagues for taking this bold decision and the continuous support to see it through,” he said.

“I am pleased to announce that this IPO was successful raising N$2.541 billion despite the current depressed economy,” the minister added.

Meanwhile, on Friday, Namibia Post and Telecom Holdings Limited (NPTH), the holding company of Telecom Namibia, MTC and Nampost, declared N$400 million dividends to the government.

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Allgemeine Zeitung 2024-11-20

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